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  • keyboard_arrow_rightSecond state-owned power utility is on the cards to alleviate SA’s electricity crisis

Second state-owned power utility is on the cards to alleviate SA’s electricity crisis

By: Natasha Archary

President Cyril Ramaphosa says a second state-owned power utility is on the cards to alleviate South Africa’s electricity crisis.

Speaking at the South African Communist Party’s (SACP) elective congress in Boskburg, on Friday, 15 July.

Thanking the party for its strong alliance with the ANC throughout the years, Ramaphosa said it is this tie that strengthens the ruling party.

“We recognise that there have been weaknesses and lapses and shortcomings in how we have managed this relationship and how we have approached the tasks and responsibilities that are at hand. Persistent loadshedding continues to plague the country and this is what is holding the growth and recovery of our economy back.”

The President says there’s a proposal for the ANC to introduce a second state-owned power utility which will if need be compete with Eskom.

Ramaphosa says the decision comes due to Eskom’s failure to provide consistent power to the country over the past 15-years.

A proposal for the second power utility was initially proposed by Minster of Energy and Mineral Resources, Gwede Mantashe.

“For instance, Gwede Mantashe suggested we set up another state-owned entity to take on shortfalls by the other entity. And I said to him, I agree. This will also mean a competition for the price of electricity and hold both state-owned enterprises accountable to the public.”

Ramaphosa said the rumours that there’s an agenda to privatise Eskom are false.

He was addressing EFF leader, Julius Malema’s accusations against him, where Ramaphosa was accused of using loadshedding as an excuse to blindside South Africans from the truth.

The President said, the objective is to give South Africans a solution similar to that of China, which has a number of state-owned electricity generating companies, that compete amongst themselves to bring prices down.

“Yes, we should reduce the risk of one company failing. Like take for example, Eskom which has been monopolising the space for 100 years and yet continues to pose a great risk to the country.”

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